[Congressional Record Volume 146, Number 21 (Wednesday, March 1, 2000)]
[Extensions of Remarks]
[Page E207]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           THE INTRODUCTION OF THE TELEWORK TAX INCENTIVE ACT

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                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                        Wednesday, March 1, 2000

  Mr. WOLF. Mr. Speaker, today I am introducing a bill to provide a 
$500 tax credit for telework. The purpose of my legislation is to 
provide an incentive to encourage more employers to consider telework 
for their employees. Telework should be a regular part of the 21st 
century workplace. The best part of telework is that it improves the 
quality of life for all.
  Nearly 20 million Americans telework today, and according to experts, 
40 percent of American jobs are compatible with telework. Telework 
reduces traffic congestion and air pollution. It reduces gas 
consumption and our dependency on foreign oil. Telework provides people 
with disabilities greater job opportunities. Telework helps fill our 
nation's labor market shortage. It is also a good way for retirees to 
pick up part-time work.
  Companies save significantly when they have a strong telecommuting 
program. At one national telecommunications company, nearly 25 percent 
of its employees work from home at least 1 day per week. The company 
found positive results in the way of fewer days of sick leave, better 
worker retention, and higher productivity.
  According to a George Mason University (Fairfax, VA) study, for every 
1 percent of the Washington metro region workforce that telecommutes, 
there is a 3-percent reduction in traffic delays. George Mason 
University has recently completed another study which suggests that on 
Friday mornings there is a 26- to 4-percent drop in traffic volume in 
the Washington metro region, a so-called ``Friday effect.''
  This is promising news because it means that with just a 1- to 2-
percent increase in the number of commuters who leave their cars parked 
and instead telework just 1 or 2 days per week, we could get to the so-
called ``Friday effect'' all week long.
  Last fall, I participated in Virginia Governor James Gilmore's 
telework task force. I want to take the opportunity to congratulate 
Governor Gilmore for his strong leadership and involvement in telework. 
The Governor's task force made a number of recommendations to increase 
and promote telework. One recommendation was to establish a tax credit 
toward the purchase and installation of electronic and computer 
equipment that allow an employee to telework. For example, the cost of 
a computer, fax machine, modem, phone, printer, software, copier, and 
other expenses necessary to enable telework could count toward a tax 
credit, provided the person worked at home a minimum number of days per 
year.
  My legislation today would provide a $500 tax credit ``for expenses 
paid or incurred under a teleworking arrangement for furnishings and 
electronic information equipment which are used to enable an individual 
to telework.'' For example, the cost of a computer, fax machine, modem, 
software, etc., as well as home office furnishing would apply toward 
the credit. An employee must telework a minimum of 75 days per year to 
qualify for the tax credit. Both the employer and employee are eligible 
for the tax credit, but the tax credit goes to whomever absorbs the 
expense for setting up the at-home worksite.
  Mr. Speaker, I am pleased to have many groups joining in support of 
my legislation. Supporters include: the International Telework 
Association and Council, Northern Virginia Technology Council, Greater 
Washington Board of Trade, Covad Communications, National Town Builders 
Association, George Mason University, Litton Industries, Orbital 
Sciences Corporation, Consumer Electronic Association, Fairfax County 
Chamber of Commerce, Capnet, BTG Corporation, Electronic Industries 
Alliance, Telecommunications Industry Association, American Automobile 
Association Mid-Atlantic, Dimensions International Inc., Capunet, 
TManage, Science Applications International Corporation, AT&T, Virginia 
Economic Bridge, Computer Associates Incorporated, and Dyn Corp.
  I have stated before that work is something you do, not someplace you 
go. Hopefully we can make telework as commonplace as the morning 
traffic report. There is nothing magical about strapping ourselves into 
a car and driving sometimes up to an hour and a half, arriving at a 
workplace and sitting before a computer. We can access the same 
information from a computer in our living rooms. Wouldn't it be great 
if we could replace the evening rush hour commute with time spent with 
the family, or coaching little league or other important quality of 
life matters?
  Mr. Speaker, I hope our colleagues will consider signing on as a 
cosponsor of this proposal to promote telework and provide employees 
choices for the workplace.

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